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Public Expenditure on Supply Reduction Policies PUBLIC EXPENDITURE ON SUPPLY REDUCTION POLICIES PREMS 062717 Authors: Anne Line Bretteville-Jensen Claudia Costa Storti Thomas Kattau Sania Mikulic Fatima Trigueiros Fivos Papamalis Laura Piscociu Sergey Tsarev PUBLIC EXPENDITURE ON SUPPLY REDUCTION POLICIES Authors: Anne Line Bretteville-Jensen Norwegian Institute of Public Health, Oslo Claudia Costa Storti EMCDDA Thomas Kattau Pompidou Group Sania Mikulic Office for combating drugs abuse Government of the Republic of Croatia, Zagreb Fatima Trigueiros General Directorate for Interventions on Addictive Behaviours and Dependencies, Lisbon Fivos Papamalis Advisor to the Greek National Drug Coordinator, Athens Laura Piscociu Romanian National Anti-Drug Agency, Bucharest Sergey Tsarev State Medical Institution “Chapaevsk Narkology Hospital”, Samara Council of Europe The opinions expressed in this work are the responsibility of the authors and do not necessarily reflect the official policy of the Council of Europe or the Pompidou Group. All requests concerning the reproduction or translation of all or part of this document should be addressed to the Directorate of Communication (F-67075 Strasbourg Cedex or [email protected]). All other correspondence concerning this document should be addressed to the Pompidou Group. Cover and layout: Documents and Publications Production Department (SPDP), Council of Europe This publication has not been copy- edited by the SPDP Editorial Unit to correct typographical and grammatical errors. © Council of Europe, May 2017 Printed at the Council of Europe Contents FOREWORD 5 EXECUTIVE SUMMARY 6 ACKNOWLEDGEMENTS 7 INTRODUCTION 8 DEFINING CONCEPTS 10 Public expenditure 10 Drug-related public expenditure 10 Public expenditure on supply reduction initiatives 10 EMPIRICAL ESTIMATES OF DEMAND AND SUPPLY POLICY EXPENDITURE 11 STEPS IN COST ESTIMATION AND ANALYSIS 12 Defining the scope and objects 12 Making an inventory of service providers 12 Mapping financing entities 12 Data collection 12 Classifying and identifying data on drug-related spending 13 Extracting expenditure data from sources: labelled and unlabelled expenditure 13 Reporting the value of estimates 15 EXAMPLES OF SECTORIAL MODELS 16 Police 16 Customs 16 Court systems 17 Prisons 17 EXAMPLES OF NATIONAL STUDIES 18 Croatia 18 Belgium 18 Italy 18 France 19 Luxembourg 19 Russia 19 Portugal 19 Other national studies 19 INTERNATIONAL DATABASES USED TO MODEL DRUG-RELATED PUBLIC EXPENDITURE 20 CONCLUSIONS 21 RECOMMENDATIONS 22 GLOSSARY 23 REFERENCES 25 APPENDIX 1 – AVAILABLE DATABASES AND POTENTIAL INDICATORS FOR DRUG-RELATED PUBLIC EXPENDITURES 27 APPENDIX 2 – THE INTERNATIONAL CLASSIFICATION OF THE FUNCTIONS OF GOVERNMENT (COFOG) 30 APPENDIX 3 – SUMMARY TABLES: DATA FROM INTERNATIONAL DATABASES 31 ACRONYMS 36 TABLE REFERENCES 36 ► Page 3 Foreword confirmed political will to address the drugs are available for European countries. To facilitate and problem in Europe lies not only in the develop- promote future empirical expenditure studies, relevant A ment of appropriate policies, but in the amount data sources and methodologies applied in empirical of public funds assigned to implement cost effective estimations are listed and discussed. policies. Currently, however, analysing what these This publication brings together the findings of wider funds are is still difficult. Information and data are study conducted by the Pompidou Group in cooper- still sparse and national estimates tend to neither use ation with the EMCDDA seeking to identify the unin- comparable definitions nor agreed methodologies. tended effects and associated costs of drug control Supply reduction is an approach used for addressing policies. The aim of this publication is threefold. First, the illicit drug phenomena. It comprises the whole increase international awareness about the impor- system of laws, regulatory measures, courses of action tance of estimating public expenditure on supply and funding priorities intended to reduce the avail- reduction initiatives. Second, stress the importance ability of illegal drugs. The EU Drugs Strategy (2013- of harmonizing definitions and increasing availability, 2020) sets the dissemination of the evaluation of comparability and reliability of data as well as methods interventions results as a priority. Providing sound for sound estimates. Third, contribute to developing methods to estimate drug-related public expenditure sound estimation practices to obtain accurate, com- is an important step in this direction. Such estimates plete and reliable drug policy evaluations. aim to calculate the amount of resources spent on Promoting international cooperation and develop- implementing targeted interventions and may reveal ing of effective working partnerships between drug the extent to which policy intentions are reflected in international organizations, policy makers, specialists relevant budgets. in accountancy, law enforcement agents and those This publication is a first step towards a systematic in charge of economic modelling is the way forward. analysis. It examines a set of recent and representative While recognising the limitations imposed by currently attempts to estimate public expenditure on supply available data sets, this publication sheds light on reduction policies. Consequently, it proposes a com- current practice and, in doing so, suggests areas of mon set of definitions aiming to establish a common focus for future desired methodological development. basis for understanding such complex subject matter In this way it hopes that the estimation of drug-related and to facilitate comparability in three main dimen- public expenditure and policy evaluation will move sions: time, policy and countries. Although the study forward, in Europe. For continuous improvements to is mainly focused in supply reduction expenditures, take place, however, it is essential that partnerships are it reports data on the balance between spending on extended and maintained with the goal of developing demand and on supply reduction, when estimates good practices, standards and guidelines in this field. Jan Malinowski Alexis Goosdeel Executive Secretary of the Pompidou Group Director of the EMCDDA ► Page 5 Executive summary upply reduction has been normally used for This report takes a first step towards a systematic addressing the illicit drug phenomena in Europe. analysis, by examining a set of representative attempts S It uses the whole system of laws, regulatory mea- to estimate public expenditure on supply reduction sures, courses of action and funding priorities used interventions. It proposes a common set of defini- by governments and their representatives. tions, aiming to establish a common basis for under- Evaluating drug policy is an integral part of a cost-ef- standing this topic and facilitating comparability in ficient approach to tackle illicit drugs. Assessing and three main dimensions: time, policy and countries. estimating drug-related public expenditure is a first Although it is mainly confined to supply reduction step in evaluations exercises. Estimates aim to cal- expenditures, in order to set the context, it describes culate the amount of resources spent, or needed, to the proportion that total drug-related expenditure implement these targeted interventions. Therefore, represents of national public spending and; presents estimates may reveal to what extent policy intentions the balance between demand and supply reduction are reflected in relevant budgets, if considered that spending for a number of European countries. With the size of the phenomena and resources available the aim of facilitating and promoting future empirical condition choices. expenditure studies and of setting the ground for the development of good practices, relevant data sources Until now, estimates for the funds spent by govern- and methodologies applied are listed and discussed ments in this field are sparse. They have been mostly and examples of sectorial models of public spending produced at national level and applied different defi- are selectively provided. Finally, some conclusions and nitions, with no commonly agreed methodologies or recommendations are offered. comparable datasets. Uncertainty about the most appropriate economic models to use also exists. These factors have constituted effective barriers to rapid developments of policy evaluation and cost-effective analysis in the field. ► Page 6 Acknowledgements he authors would like to thank the EMCDDA and the Pompidou Group Secretariat for the support ren- dered in the preparation of this publication. In addition gratitude is expressed to the following experts T who contributed to the content of this publication in the context of their work in the Pompidou Group’s expert group on effects and associated costs of drug control policies: Peyman Altan Turkish Public Health Institution, Ankara, Turkey Pavel Bem Charles University, Prague, Czech Republic Torbjørn Brekke Senior Adviser, Ministry of Health and Care Services, Norway Yossi Harel-Fisch Bar-Ilan University, Ramat Gan, Israel Elena Hedoux Pompidou Group, Council of Europe Janusz Sieroslawski Institute of Psychiatry & Neurology, Warsaw ► Page 7 Introduction he aim of this publication is threefold. Firstly, to the whole system of laws, regulatory measures, courses increase international awareness concerning the of action and funding priorities concerning illicit drugs T importance of estimating public expenditure on put into effect by a government or its representatives supply reduction initiatives.
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